The Country of Yokovia Does Not Trade with Any Other

question 348

Multiple Choice

The country of Yokovia does not trade with any other country.Its GDP is $30 billion.Its government purchases $5 billion worth of goods and services each year,collects $7 billion in taxes,and provides $3 billion in transfer payments to households.Private saving in Yokovia amounts to $5 billion.What are consumption and investment in Yokovia?

• A) $18 billion and $5 billion,respectively
• B) $21 billion and $4 billion,respectively
• C) $13 billion and $7 billion,respectively
• D) There is not enough information to answer the question.

---

Definitions:

Investment Balance

The total value of all investments held by an individual or entity at a given time, including stocks, bonds, and other securities.

Equity Method

An accounting technique used to record investments in other companies when the investing company has significant influence but does not control the investee.

Total Excess Amortization

Refers to the amount of amortization that exceeds the net carrying value of the intangible asset being amortized.

Fair-Value Allocations

The process of assigning fair values to different assets and liabilities when a company is acquired, as part of the purchase price allocation.